Communications:Equipment and Services

PresentedBy

Team #9

FirmsCIENA Corporation

Lucent Technologies Inc.

AT&T Corporation

Nokia Corporation

CIENA Corporation Background Information

CIENA Corporation designs, manufactures and sells open architecture, DWDM systems for fiberoptic communications networks, optical networking solutions and access systems

Further Background Information

Sector: TechnologyIndustry: Communications EquipmentMarket Cap(Mil)$ : 32,664.53Employees: 2,775

Key RatiosDividend InformationYield %=0.00Annual Dividend=0.00Payout Ratio=0.00

Financial StrengthQuick Ratio=2.81Current Ratio=4.69Total Debt/Equity=0.00

More Key RatiosManagement EffectivenessReturn on Equity=12.72Return on Investment=11.93Return on Assets=10.06Financial Leverage- ROE>ROA –favorablePer share data earnings=0.27$

ProfitabilityGross Margin%=44.41Operating Margin%=12.56Profit Margin%=9.48

Strengths -Profitability Compared with Industry

CompanyGross Margin =44.41Operating Margin= 12.56Profit Margin=9.48

IndustryGross Margin=46.83Operating Margin= 1.89Profit Margin=-0.68

Lucent Technologies,Inc.LU designs, develops, manufactures and services systems and softwareEnables network operators and other service providers to provide wireline and wireless access, local, long distance and int’l voice, data and video services and cable service

Background Information

Sector: TechnologyIndustry: CommunicationsEmployees: 153,000Market Cap(Mil)$: 51,555.36

Key Ratios

Dividend InformationYield %=.52Annual Dividend=0.08Payout Ratio%=13.16

Financial StrengthQuick Ratio=1.32Current Ratio= 2.51Total/Debt Equity= .20

More Ratios

Management EffectivenessReturn on Equity=10.53Return on Assets=4.84Return on Investments=6.27Financial Leverage-ROE>ROA-favorable

ProfitabilityGross Margin %=44.32Operating Margin %=11.62Profit Marin%=5.62Per share data earnings=0.59

Compared to Industry

CompanyProfitabilityGross Margin%=44.32-Industry 46.83Operating Margin%=11.62-Industry 1.89Profit Margin%=5.62-Industry –0.68

AT&T Corporation

Provides voice,data and video telecommunications services, including cellular telephone and internet services, to businesses, consumers and government agenciesProvides cable TV to 11 million customers

Background Information

Sector:ServicesIndustry: Communications ServicesEmployees: 147,800Market Cap(Mil)$: 75,304.66

Key Ratios

Dividend InformationYield%=4.39Annual Dividend%=0.88Payout Ratio%=49.00

Financial InformationQuick Ratio=0.23Current Ratio=0.30Total Debt/Equity=0.56Sales$19.50

More Key Ratios

Management EffectivenessReturn on Equity= 6.55Return on Assets= 3.87Return on Investment= 4.69Financial leverage-ROE>ROA-Favorable

Profitability Gross Margin%=53.43Operating Margin%=16.94Profit Margin%=11.85Per Share Data Earnings=$1.77

Compare with Industry

ProfitabilityGross Margin%=44.32, Industry 46.83Operating Margin% =16.94, Industry1.89Profit Margin%=11.85, Industry –0.68

Nokia Corporation

A supplier of telecommunications systems and equipmentCore businesses include the development, manufacture, and delivery of operator-driven infrastructure solutions and end-user-driven mobile phones

Background Information

Sector: TechnologyIndustry: Communications EquipmentMarket Cap(Mil)$: 235,502.07Employees: 60,166

Key Ratios

Dividend InformationYield%=1.52Annual Dividend%= 0.77Payout Ratio%= 0.00

Financial StrengthQuick Ratio=1.20Current Ratio=1.51Total Debt/Equity=0.13Per share data earnings$=0.66

More Key Ratios

Management EffectivenessReturn on Equity=48.21Return on Assets= 24.68Return on Investment=46.18Financial leverage-ROE>ROA-favorable

ProfitabilityGross Profit%=38.50Operating Margin%=20.01Profit Margin%=13.42

Compared to Industry

ProfitabilityGross margin%=38.50, Industry=46.83Operating Margin%=20.01, Industry=1.89Profit Margin%=13.42, Industry=-.68

Comparison Between Companies

Financial Strength/Management Effectiveness Comparison A:\ratios companies.xlsFirm Quick

RatioCurrent Ratio

Return on Equity%

Return on Assets%

Return on Investment%

CIEN 2.81 4.69 12.72 10.06 11.93

LU 1.32 2.51 10.53 4.84 6.27

T 0.23 0.30 6.55 3.87 4.69

NOK 1.20 1.51 48.21 24.21 46.18

Profitability

AT&T seems to have the highest gross margin%Nokia seems to have the highest profit margin- return on sales

http://www.marketguide.com/

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ProfitMargin%

CIENLUTNOK

GrossMargin%

Ending Comparisons

Long term Debt/Equity0.00=CIENA-0.56 most AT&T=.56Earnings per share$=.66 for Nokia, CIENA=.27, AT&T=1.77, Lucent=.59Companies are competitors and reflect weaknesses and strengthsOverall, Nokia is doing the best

Sources

http://www.marketguide.com/